Exhibit 99.1 Grid Dynamics Reports First Quarter 2024 Financial Results Revenue of $79.8 million and GAAP Net Loss of $3.9 million San Ramon, Calif. May 2, 2024 – Grid Dynamics Holdings, Inc. (Nasdaq: GDYN) ("Grid Dynamics" or "Company"), a leader in enterprise-level digital transformation, today announced results for the first quarter ended March 31, 2024. We are very pleased to report the first quarter 2024 revenues of $79.8 million that was higher than our outlook range of $77.0 million to $79.0 million ...

Part I [Business](index=6&type=section&id=Item%201.%20Business) Grid Dynamics offers technology consulting and engineering services, specializing in enterprise AI, cloud, data, and customer experience - Grid Dynamics provides technology consulting, platform engineering, and advanced analytics, distinguished by **over 7 years of Enterprise AI experience**[20](index=20&type=chunk)[21](index=21&type=chunk) - Core service areas include **Cloud Platform, AI/Machine Learning, Digital Engagement, and Supply Chain/IoT engineering**[32](index=32&type=chunk)[33](index=33&type=chunk)[35](index=35&type=chunk) - As of December 31, 2023, Grid Dynamics employed **3,920 personnel** across engineering centers in 12 countries[45](index=45&type=chunk)[57](index=57&type=chunk) - The company competes with **emerging digital services firms, global consulting firms, India-based IT providers, and in-house IT departments**[55](index=55&type=chunk)[58](index=58&type=chunk) - In 2023, **one customer accounted for 10% or more of revenue**, a decrease in top-client concentration from prior years[54](index=54&type=chunk) Revenues by Vertical (2021-2023) | Vertical | 2023 Revenue (in thousands) | 2023 % of Revenue | 2022 Revenue (in thousands) | 2022 % of Revenue | 2021 Revenue (in thousands) | 2021 % of Revenue | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Retail | $102,551 | 32.8% | $99,681 | 32.1% | $61,717 | 29.2% | | Tech, Media and Telecom | $98,830 | 31.6% | $98,334 | 31.7% | $67,689 | 32.0% | | CPG/Manufacturing | $42,861 | 13.7% | $61,216 | 19.7% | $43,461 | 20.6% | | Finance | $28,842 | 9.2% | $21,893 | 7.1% | $17,515 | 8.3% | | Other | $39,826 | 12.7% | $29,358 | 9.4% | $20,898 | 9.9% | | **Total** | **$312,910** | **100.0%** | **$310,482** | **100.0%** | **$211,280** | **100.0%** | [Risk Factors](index=15&type=section&id=Item%201A.%20Risk%20Factors) The company faces risks from client concentration, the Ukraine conflict, macroeconomic pressures, intense competition, and talent retention - Revenue concentration remains high, with the **top 10 clients accounting for 56.1% of revenue in 2023**[81](index=81&type=chunk) - The **military conflict in Ukraine impacted operations**, leading to employee relocation and cessation of Russian Federation operations[88](index=88&type=chunk)[89](index=89&type=chunk)[90](index=90&type=chunk) - Macroeconomic conditions, including **inflation and rising interest rates**, could adversely affect client spending and growth[93](index=93&type=chunk) - Intense competition comes from **global consulting firms, digital transformation providers, and India-based IT service providers**[96](index=96&type=chunk)[97](index=97&type=chunk) - Failure to **attract and retain highly skilled IT professionals** poses a significant risk to operating costs and project delivery[100](index=100&type=chunk)[101](index=101&type=chunk) - Risks include **security breaches and cyberattacks** that could lead to unauthorized data access, liability, and reputational damage[108](index=108&type=chunk) - Social, ethical, and regulatory issues concerning **AI use could lead to reputational harm and decreased demand** for AI solutions[105](index=105&type=chunk)[106](index=106&type=chunk)[107](index=107&type=chunk) - Strategic acquisitions like **Tacit, Mutual Mobile, and NextSphere** carry integration risks and may not achieve anticipated goals[156](index=156&type=chunk) [Unresolved Staff Comments](index=40&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports that it has no unresolved staff comments from the SEC - None[218](index=218&type=chunk) [Cybersecurity](index=40&type=section&id=Item%201C.%20Cybersecurity) Grid Dynamics maintains an established cybersecurity risk management framework, overseen by the Board of Directors - The company has **established policies and processes for managing cybersecurity threats**, integrated into its overall risk management system[219](index=219&type=chunk)[220](index=220&type=chunk) - Cybersecurity governance is managed by a **CISO and management committee**, with Board audit committee oversight[227](index=227&type=chunk)[228](index=228&type=chunk) - The **COO reports quarterly to the audit committee** on cybersecurity risks, incidents, and system testing[230](index=230&type=chunk) - No cybersecurity incident has had a **significant impact on operations or financial standing**[225](index=225&type=chunk) [Properties](index=42&type=section&id=Item%202.%20Properties) Grid Dynamics leases all of its 23 facilities across 12 countries, with its principal executive office located in San Ramon, California - The company operates **23 leased facilities in 12 countries**, with its principal executive office in San Ramon, CA[231](index=231&type=chunk) [Legal Proceedings](index=42&type=section&id=Item%203.%20Legal%20Proceedings) The company is not currently a party to any material legal proceedings and is not aware of any material legal or governmental proceedings contemplated against it - Grid Dynamics is **not currently a party to any material legal proceedings**[232](index=232&type=chunk) [Mine Safety Disclosures](index=42&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[233](index=233&type=chunk) Part II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=43&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) Grid Dynamics' common stock is listed on NASDAQ under "GDYN"; no cash dividends are expected - The company's common stock has been listed on the NASDAQ under the symbol **"GDYN" since March 6, 2020**[236](index=236&type=chunk) - The company has **not paid cash dividends** and does not expect to in the foreseeable future, retaining earnings[238](index=238&type=chunk) Stock Performance Comparison (March 6, 2020 - December 31, 2023) | Company/Index | 03/06/2020 | 12/31/2020 | 12/31/2021 | 12/31/2022 | 12/31/2023 | | :--- | :--- | :--- | :--- | :--- | :--- | | Grid Dynamics Holdings, Inc. | $100.00 | $107.60 | $324.25 | $95.82 | $113.83 | | S&P 500 | $100.00 | $129.07 | $166.12 | $136.04 | $171.80 | | Peer Group | $100.00 | $154.70 | $237.79 | $154.37 | $190.69 | [Reserved](index=44&type=section&id=Item%206.%20%5BReserved%5D) This item is not applicable - Not applicable[244](index=244&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=44&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) In 2023, Grid Dynamics reported **$312.9 million in revenue**, a slight increase, with a significantly reduced net loss [Fiscal Year Highlights](index=45&type=section&id=Fiscal%20Year%20Highlights) - In 2023, **revenue increased by 0.8% to $312.9 million**, while **GAAP gross margin decreased to 36.2%** and **net loss significantly decreased by 94.0% to $1.8 million**[249](index=249&type=chunk)[250](index=250&type=chunk) Summary of Financial Results (2021-2023) | Metric | 2023 | 2022 | 2021 | | :--- | :--- | :--- | :--- | | Revenues | $312,910 | $310,482 | $211,280 | | Gross profit | $113,146 | $120,590 | $87,728 | | Income/(loss) from operations | ($5,580) | ($21,008) | $50 | | Net loss | ($1,765) | ($29,214) | ($7,700) | | Diluted loss per share | ($0.02) | ($0.42) | ($0.13) | | Non-GAAP EBITDA | $44,246 | $58,213 | $39,077 | | Non-GAAP net income | $25,077 | $36,627 | $24,160 | | Non-GAAP diluted EPS | $0.32 | $0.51 | $0.36 | [Recent Acquisitions](index=46&type=section&id=Recent%20Acquisitions) - On April 18, 2023, the company acquired **NextSphere Technologies Inc.** to enhance technical offerings and expand its global footprint[252](index=252&type=chunk) - On December 23, 2022, the company acquired **Mutual Mobile Inc.** to accelerate strategic expansion into India[253](index=253&type=chunk) [Key Performance Indicators and Other Factors Affecting Performance](index=46&type=section&id=Key%20Performance%20Indicators%20and%20Other%20Factors%20Affecting%20Performance) Personnel by Region (as of Dec 31) | Region | 2023 | 2022 | 2021 | | :--- | :--- | :--- | :--- | | Americas | 567 | 521 | 386 | | Europe | 2,806 | 3,034 | 2,888 | | Rest of the world | 547 | 243 | — | | **Total** | **3,920** | **3,798** | **3,274** | Revenue Concentration by Customer Group | Customer Group | 2023 % of Revenue | 2022 % of Revenue | 2021 % of Revenue | | :--- | :--- | :--- | :--- | | Top one customer | 14.4% | 12.6% | 11.6% | | Top five customers | 37.0% | 43.5% | 43.9% | | Top ten customers | 56.1% | 59.7% | 60.4% | | Top twenty customers | 68.3% | 72.6% | 72.5% | [Results of Operations](index=50&type=section&id=Results%20of%20Operations) - **Revenue increased by 0.8% to $312.9 million in 2023**, with Retail growing 2.9% and CPG/Manufacturing decreasing 30.0%[284](index=284&type=chunk)[286](index=286&type=chunk) - **Gross margin decreased from 38.8% to 36.2% in 2023**, primarily due to increased cost of revenues from acquisitions and higher compensation[289](index=289&type=chunk)[290](index=290&type=chunk) - **General and administrative expenses decreased by 24.7% to $79.8 million in 2023**, driven by lower stock-based compensation and reorganization costs[296](index=296&type=chunk) - **Other income increased to $10.4 million in 2023** from $0.6 million, mainly from money market funds and a $4.2 million write-off[299](index=299&type=chunk) [Non-GAAP Measures](index=52&type=section&id=Non-GAAP%20Measures) Reconciliation of GAAP Net Loss to Non-GAAP EBITDA | (in thousands) | 2023 | 2022 | 2021 | | :--- | :--- | :--- | :--- | | **GAAP net loss** | **($1,765)** | **($29,214)** | **($7,700)** | | Depreciation and amortization | $8,926 | $6,626 | $5,049 | | Provision for income taxes | $6,603 | $8,761 | $5,248 | | Stock-based compensation | $35,516 | $60,968 | $33,036 | | Geographic reorganization | $1,858 | $11,023 | $0 | | Transaction and transformation-related costs | $2,038 | $604 | $942 | | Restructuring | $1,488 | $0 | $0 | | Other (income)/expense, net | ($10,418) | ($555) | $2,502 | | **Non-GAAP EBITDA** | **$44,246** | **$58,213** | **$39,077** | [Liquidity and Capital Resources](index=54&type=section&id=Liquidity%20and%20Capital%20Resources) - As of December 31, 2023, the company held **$257.2 million in cash and cash equivalents**, primarily from operations[311](index=311&type=chunk)[312](index=312&type=chunk) Summary of Cash Flows (in thousands) | Cash Flow Activity | 2023 | 2022 | 2021 | | :--- | :--- | :--- | :--- | | Net cash provided by operating activities | $41,093 | $31,652 | $17,973 | | Net cash used in investing activities | ($25,950) | ($16,323) | ($35,366) | | Net cash (used in)/provided by financing activities | ($16,321) | $97,758 | $49,134 | [Quantitative and Qualitative Disclosures about Market Risk](index=56&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company's primary market risk is **foreign currency exchange rate fluctuations**, impacting a significant portion of operating expenses - The company faces **foreign currency risk**, with **37.9% of combined cost of revenue and operating expenses in 2023** denominated in non-USD currencies[321](index=321&type=chunk)[322](index=322&type=chunk) - A 10% decrease in **Polish zloty against USD would increase income from operations by $3.7 million**[323](index=323&type=chunk) - The company **does not currently hedge foreign currency exposure** but aims to minimize it by matching expenses to revenue currencies[325](index=325&type=chunk) [Financial Statements and Supplementary Data](index=57&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents the company's audited consolidated financial statements for fiscal years 2021-2023 - Grant Thornton LLP issued an **unqualified opinion on the company's financial statements** and internal control over financial reporting[330](index=330&type=chunk)[331](index=331&type=chunk)[337](index=337&type=chunk) [Changes in and Disagreements With Accountants on Accounting and Financial Disclosure](index=96&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20With%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The company reports no changes in or disagreements with its accountants on accounting and financial disclosure - None[514](index=514&type=chunk) [Controls and Procedures](index=96&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that the company's internal control over financial reporting and disclosure controls were effective - Management concluded that the company's **internal control over financial reporting was effective** as of fiscal 2023 end[517](index=517&type=chunk) - The evaluation of internal control excluded **NextSphere Technologies, Inc.**, acquired during 2023[516](index=516&type=chunk) - The **CEO and CFO concluded disclosure controls and procedures were effective** as of December 31, 2023[518](index=518&type=chunk) [Other Information](index=96&type=section&id=Item%209B.%20Other%20Information) The company reports no other information for this item - None[521](index=521&type=chunk) [Disclosure Regarding Foreign Jurisdictions that Prevent Inspections](index=97&type=section&id=Item%209C.%20Disclosure%20Regarding%20Foreign%20Jurisdictions%20that%20Prevent%20Inspections) This item is not applicable to the company - Not applicable[522](index=522&type=chunk) Part III This section incorporates information by reference from the company's upcoming Definitive Proxy Statement for the Annual Meeting of Stockholders [Directors, Executive Officers and Corporate Governance](index=98&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information regarding directors, executive officers, and corporate governance is incorporated by reference from the company's upcoming Proxy Statement - Information for this item will be **incorporated by reference from the company's Proxy Statement**[524](index=524&type=chunk) [Executive Compensation](index=98&type=section&id=Item%2011.%20Executive%20Compensation) Information regarding executive compensation is incorporated by reference from the company's upcoming Proxy Statement - Information for this item will be **incorporated by reference from the company's Proxy Statement**[526](index=526&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=98&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Information regarding security ownership is incorporated by reference from the company's upcoming Proxy Statement - Information for this item will be **incorporated by reference from the company's Proxy Statement**[527](index=527&type=chunk) [Certain Relationships and Related Transactions, and Director Independence](index=98&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Information regarding certain relationships, related transactions, and director independence is incorporated by reference from the company's upcoming Proxy Statement - Information for this item will be **incorporated by reference from the company's Proxy Statement**[528](index=528&type=chunk) [Principal Accounting Fees and Services](index=98&type=section&id=Item%2014.%20Principal%20Accounting%20Fees%20and%20Services) Information regarding principal accounting fees and services is incorporated by reference from the company's upcoming Proxy Statement - Information for this item will be **incorporated by reference from the company's Proxy Statement**[529](index=529&type=chunk) Part IV [Exhibit and Financial Statement Schedules](index=99&type=section&id=Item%2015.%20Exhibit%20and%20Financial%20Statement%20Schedules) This section lists documents filed as part of the Annual Report, with financial statements referenced under Item 8 - All financial statement schedules are **omitted as not required or included elsewhere** in the consolidated financial statements[532](index=532&type=chunk) [Form 10-K Summary](index=101&type=section&id=Item%2016.%20Form%2010-K%20Summary) The company has not provided a summary for this item - None[537](index=537&type=chunk)

Financial Data and Key Metrics Changes - The fourth quarter revenue was $78.1 million, slightly above guidance and Wall Street expectations, with a sequential growth of 0.8% but a year-over-year decline of 3.1% [24] - Non-GAAP net income for the fourth quarter was $5.7 million, or $0.07 per share, compared to $5.9 million, or $0.08 per share in the previous quarter [9] - GAAP net income in the fourth quarter totaled $2.9 million, or $0.04 per share, an increase from $0.7 million, or $0.01 per share in the third quarter [78] Business Line Data and Key Metrics Changes - The Retail segment, the largest vertical, represented 31.5% of revenues, decreasing by 7.4% sequentially and 4.2% year-over-year [75] - The Finance vertical represented 10.6% of revenue, increasing by 13.4% sequentially and 32.6% year-over-year, driven by financial technology customers and new logos [47] - The Other segment accounted for 14.5% of fourth quarter revenue, up 11.5% sequentially, driven by strength in healthcare and restaurant industries [25] Market Data and Key Metrics Changes - Revenue from the top five customers was 39.7%, down from 43.2% year-over-year, indicating greater diversification [30] - The company serves customers across 18 countries, with a focus on expanding its presence in India, Poland, and Romania [29][43] - The demand environment is improving, with customers either maintaining or moderately increasing their spending [18] Company Strategy and Development Direction - The GigaCube strategy aims for a billion-dollar revenue target, focusing on knowledge management, partnerships, new verticals, and larger deals [44] - The company is investing in AI capabilities, with over 25% of engineers trained in generative AI, reflecting a commitment to enhancing service offerings [17] - Partnerships contributed 13% of overall revenue in 2023, with a focus on capturing greater wallet share from hyperscalers and SaaS companies [72] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about returning to positive momentum, particularly with new enterprise logos and existing customer trends [4] - The company anticipates a rebound in growth, with Q2 expected to be a new high watermark for revenue [82] - The macro environment is stabilizing, with a reduction in revenue headwinds from large existing customers expected in 2024 [41] Other Important Information - Cash and cash equivalents totaled $257.2 million at the end of Q4, up from $253.7 million in the previous quarter [50] - The company is focused on maintaining a lower growth rate in operating expenses compared to revenue growth [93] Q&A Session Summary Question: Visibility on second quarter performance - Management expects Q2 to be a new high watermark in revenue, indicating optimism about recovery [82] Question: Headcount growth and demand recovery - Headcount growth is seen as a sign of future demand recovery, particularly in India [86] Question: Changes in sales strategy for 2024 - The company plans to balance efforts between expanding existing client relationships and acquiring new logos [88] Question: Contribution from partnerships in 2024 - Partnerships are expected to continue contributing significantly, with a focus on becoming an advisory partner [107][109] Question: Update on capital allocation - The focus is on M&A and cash generation, with an emphasis on developing AI skills [111][112] Question: AI-related metrics and demand - There is significant activity in AI projects, with many new engagements incorporating AI components [114][135]

Exhibit 99.1 Grid Dynamics Reports Fourth Quarter and Full Year 2023 Financial Results Fourth Quarter Revenue of $78.1 million and Full Year Revenue of $312.9 million San Ramon Calif. – February 22, 2024 – Grid Dynamics Holdings, Inc. (NASDAQ: GDYN) ("Grid Dynamics", "the Company"), a leader in enterprise-level digital transformation, today announced results for its fourth quarter and full year ended December 31, 2023. We are very pleased to report revenue of $78.1 million in the fourth quarter 2023 that wa ...

Financial Performance - Total revenue for Q3 2023 was $77.4 million, a 0.1% increase sequentially but a (4.6)% decrease year-over-year[28] - GAAP gross profit was $28.2 million, representing 36.4% of revenue in Q3 2023[28] - Non-GAAP gross profit was $28.7 million, or 37.0% of revenue[28] - Non-GAAP EBITDA was $10.7 million, representing 13.9% of revenue[28] - Net Income was $0.7M, 0.9% of revenue[28] - Non-GAAP Net Income was $5.9M, 7.6% of revenue[28] Business Strategy and Growth - Grid Dynamics aims to reach $1 billion in annual revenue through the GigaCube growth framework[36] - The company employs an 85-10-5 approach to revenue growth, focusing on mature clients, emerging clients, and new logos respectively[157] - Grid Dynamics leverages a globally distributed delivery model to execute acquisitions and drive growth[170] - The company is focused on expanding its presence across Europe, India, and the Americas[37] Industry Focus and Expertise - Retail accounted for 29% of Q3 2023 revenue[42] - TMT (Technology, Media, and Telecom) accounted for 32% of revenue[75] - Finance accounted for 8% of Q3 2023 revenue[42] - CPG (Consumer Packaged Goods) accounted for 21% of revenue[75]

[PART I. FINANCIAL INFORMATION](index=6&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Financial Statements (Unaudited)](index=6&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) The unaudited condensed consolidated financial statements present total assets of $435.8 million, Q3 2023 revenue of $77.4 million, and a net income of $0.7 million [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheet as of September 30, 2023, shows total assets of $435.8 million, total liabilities of $62.8 million, and stockholders' equity of $372.9 million Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | September 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $253,713 | $256,729 | | Total current assets | $326,053 | $323,126 | | Goodwill | $54,633 | $45,514 | | **Total assets** | **$435,750** | **$411,146** | | **Liabilities and Equity** | | | | Total current liabilities | $52,470 | $38,710 | | **Total liabilities** | **$62,826** | **$48,102** | | **Total stockholders' equity** | **$372,924** | **$363,044** | [Condensed Consolidated Statements of Income/(Loss) and Comprehensive Income/(Loss)](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income%2F(Loss)%20and%20Comprehensive%20Income%2F(Loss)) For Q3 2023, revenues were $77.4 million with a net income of $0.7 million, while nine-month revenues reached $234.8 million with a net loss of $4.7 million Statement of Income Highlights (in thousands, except per share data) | Metric | Q3 2023 | Q3 2022 | Nine Months 2023 | Nine Months 2022 | | :--- | :--- | :--- | :--- | :--- | | **Revenues** | **$77,419** | **$81,161** | **$234,841** | **$229,906** | | Gross profit | $28,152 | $32,670 | $85,032 | $88,310 | | Income/(loss) from operations | $143 | $(4,750) | $(4,515) | $(15,396) | | **Net income/(loss)** | **$676** | **$(6,659)** | **$(4,667)** | **$(22,512)** | | Diluted EPS | $0.01 | $(0.10) | $(0.06) | $(0.33) | [Condensed Consolidated Statements of Stockholders' Equity](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity) Stockholders' equity increased to $372.9 million by September 30, 2023, primarily due to $27.7 million in stock-based compensation, offset by a $4.7 million net loss - Total stockholders' equity grew to **$372.9 million** at September 30, 2023, from **$363.0 million** at December 31, 2022[21](index=21&type=chunk) - Key activities impacting equity during the first nine months of 2023 included a net loss of **$4.7 million**, stock-based compensation of **$27.7 million**, and payments of tax obligations from net share settlements of **$15.0 million**[21](index=21&type=chunk)[24](index=24&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash provided by operating activities significantly increased to $33.5 million for the nine months ended September 30, 2023, with cash and cash equivalents ending at $253.7 million Cash Flow Summary (Nine months ended September 30, in thousands) | Cash Flow Activity | 2023 | 2022 | | :--- | :--- | :--- | | Net cash provided by operating activities | $33,537 | $19,639 | | Net cash used in investing activities | $(23,423) | $(5,381) | | Net cash (used in)/provided by financing activities | $(14,467) | $98,503 | | **Net increase/(decrease) in cash** | **$(3,016)** | **$110,824** | | Cash and cash equivalents, end of period | $253,713 | $255,188 | - The primary use of cash in investing activities was **$17.8 million** for the acquisition of a business, net of cash acquired[24](index=24&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes detail significant accounting policies, including recent acquisitions, revenue concentration by geography and vertical, and stock-based compensation expenses - On April 18, 2023, the Company acquired NextSphere Technologies for a total purchase consideration of **$25.2 million**, including **$24.3 million** in cash and **$0.9 million** in contingent consideration[34](index=34&type=chunk) - During Q3 2023, the company concluded that performance targets for the NextSphere and Mutual Mobile acquisitions would not be met and reduced the related earn-out liabilities to zero, resulting in a gain from the change in fair value[43](index=43&type=chunk)[44](index=44&type=chunk) Revenue by Vertical (Nine Months Ended Sep 30, in thousands) | Vertical | 2023 | 2022 | | :--- | :--- | :--- | | Retail | $77,972 | $74,019 | | Technology, Media and Telecom | $74,639 | $71,170 | | CPG/Manufacturing | $33,186 | $47,127 | | Finance | $20,562 | $15,649 | | Other | $28,482 | $21,941 | | **Total Revenues** | **$234,841** | **$229,906** | - Stock-based compensation expense totaled **$7.3 million** for Q3 2023 and **$27.7 million** for the nine months ended September 30, 2023, a decrease from **$17.6 million** and **$42.6 million** in the respective 2022 periods[75](index=75&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=26&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the 4.6% Q3 2023 revenue decline, improved GAAP Net Income, geopolitical impacts, and the company's strong liquidity position Q3 2023 vs Q3 2022 Financial Results (in thousands) | Metric | Q3 2023 | Q3 2022 | Change (%) | | :--- | :--- | :--- | :--- | | Revenues | $77,419 | $81,161 | (4.6)% | | Gross Profit | $28,152 | $32,670 | (13.8)% | | Income/(loss) from operations | $143 | $(4,750) | (103.0)% | | Net income/(loss) | $676 | $(6,659) | (110.2)% | | Non-GAAP EBITDA | $10,733 | $17,086 | (37.2)% | - The year-over-year decrease in Q3 revenue was largely due to macroeconomic conditions, with Retail growing **5.1%**, TMT decreasing **9.9%**, and CPG/Manufacturing declining **39.8%**[94](index=94&type=chunk)[95](index=95&type=chunk) - The company has ceased operations in Russia and expanded its global footprint with new offices in Switzerland and Armenia, and workforce expansion in India[100](index=100&type=chunk) - Total personnel grew to **3,823** as of September 30, 2023, from **3,746** a year ago, with a significant shift in employee location from CEE to the Americas and Rest of the World[107](index=107&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=37&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk is foreign currency exchange rate fluctuations, with 38.0% of Q3 2023 costs in foreign currencies, and it does not currently hedge this exposure - The company is exposed to foreign currency risk, with approximately **38.0%** of its combined cost of revenue and total operating expenses in Q3 2023 denominated in currencies other than the U.S. dollar[151](index=151&type=chunk) Sensitivity to 10% Currency Depreciation vs. USD (Q3 2023) | Currency | Impact on Income from Operations | | :--- | :--- | | Polish zloty (PLN) | +$0.9 million | | Mexican peso (MXN) | +$0.3 million | - The company does not currently hedge its foreign currency exposure but seeks to minimize it by matching expenses to revenues in the same currency where possible[150](index=150&type=chunk)[155](index=155&type=chunk) [Controls and Procedures](index=39&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded the company's disclosure controls and procedures were effective as of September 30, 2023, with no material changes in internal control over financial reporting - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of September 30, 2023[156](index=156&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, internal controls[157](index=157&type=chunk) [PART II. OTHER INFORMATION](index=40&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Legal Proceedings](index=40&type=section&id=Item%201.%20Legal%20Proceedings) The company is not currently a party to any material legal proceedings, nor is it aware of any such contemplated actions against it - As of the filing date, the company is not currently a party to any material legal proceedings[160](index=160&type=chunk) [Risk Factors](index=40&type=section&id=Item%201A.%20Risk%20Factors) This section outlines significant business risks, including client concentration, intense competition, macroeconomic and geopolitical impacts, talent retention, security breaches, and challenges related to global operations and technology adaptation - The company's revenues are highly dependent on a limited number of clients; the top 10 clients accounted for **56.8%** of revenue in the first nine months of 2023[170](index=170&type=chunk) - The military action in Ukraine has affected and may continue to affect business operations, including service delivery and financial transactions[176](index=176&type=chunk) - The company faces intense competition from global consulting firms, traditional IT service providers, and digital transformation specialists[184](index=184&type=chunk)[185](index=185&type=chunk) - Failure to attract, hire, and retain highly skilled IT professionals in a competitive market poses a significant risk to business operations and growth[188](index=188&type=chunk) - The company is exposed to risks from acquisitions, including difficulties with integration, diversion of management attention, and potential unforeseen liabilities, as seen with recent acquisitions of Daxx, Tacit, Mutual Mobile, and NextSphere[250](index=250&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=66&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales of its equity securities during the reporting period - None[314](index=314&type=chunk) [Default Upon Senior Securities](index=66&type=section&id=Item%203.%20Default%20Upon%20Senior%20Securities) The company reported no defaults upon its senior securities - None[316](index=316&type=chunk) [Mine Safety Disclosures](index=66&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - None[317](index=317&type=chunk) [Other Information](index=66&type=section&id=Item%205.%20Other%20Information) During Q3, CFO Anil Doradla and CEO Leonard Livschitz adopted Rule 10b5-1 trading plans for the sale of company common stock - On August 30, 2023, CFO Anil Doradla adopted a Rule 10b5-1 trading arrangement for the sale of up to **92,084** shares of common stock[319](index=319&type=chunk) - On September 1, 2023, CEO Leonard Livschitz adopted a Rule 10b5-1 trading arrangement for the sale of between **260,000** and **685,638** shares of common stock[320](index=320&type=chunk) [Exhibits](index=67&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the quarterly report, including CEO and CFO certifications and Interactive Data Files (XBRL) - The exhibits filed with the report include CEO and CFO certifications under Sections 302 and 906 of the Sarbanes-Oxley Act, and XBRL data files[324](index=324&type=chunk)

Grid Dynamics Holdings, Inc. (NASDAQ:GDYN) Q2 2023 Earnings Conference Call August 3, 2023 4:30 PM ET Company Participants Bin Chiang - Head of IR Leonard Livschitz - CEO Anil Doradla - CFO Conference Call Participants Puneet Jain - JPMorgan Josh Siegler - Cantor Fitzgerald Maggie Nolan - William Blair Bryan Bergin - TD Cowen Ryan Potter - Citigroup Mayank Tandon - Needham Bin Chiang Good afternoon, everyone. Welcome to Grid Dynamics Second Quarter 2023 Earnings Conference Call. I'm Bin Chiang, Head o ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 OR ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Securities registered pursuant to Section 12(b) of the Act: | Title of each class | Trading Symbol(s) | Name of each exchange on which reg ...

Grid Dynamics Holdings, Inc. (NASDAQ:GDYN) Q1 2023 Earnings Conference Call May 4, 2023 4:30 PM ET Company Participants Bin Jiang - Head of Investor Relations Leonard Livschitz - Chief Executive Officer and Director Anil Doradla - Chief Financial Officer Conference Call Participants Joshua Siegler - Cantor Fitzgerald Mayank Tandon - Needham & Company Puneet Jain - JPMorgan Bryan Bergin - TD Cowen Ryan Potter - Citi Kathleen Kronstein - William Blair Bin Jiang Good afternoon, everyone. Welcome to Grid Dynami ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 OR ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-38685 Grid Dynamics Holdings, Inc. (Exact Name of Registrant as Specified in its Charter) | Delaware | 83-063 ...